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Kit car insurance is a specific form of auto insurance that covers a car you’ve made yourself. Kit cars are often compared to prefabricated homes. Several parts are shipped to you ready for assembly, and you put them together yourself. A kit car could be purchased from several manufactures, domestic and international.
Kit Car Coverage
Most kit cars will be insured under agreed value. Agreed value means that you and your insurance provider will agree on the value of your vehicle. You will be paid this amount if your kit car is ever totaled in a traffic accident. This is because these specialty vehicles usually don’t suffer from depreciation as a normal car would. The agreed value should include the cost of the parts and the labor to build the car.
According to Finder, there are three types of commonly used coverage. What coverage you need will depend on your car’s value and whether you are financing your vehicle:
- Liability: This coverage is required in almost every state in the U.S. and covers the cost of a third party’s damages or injuries if you are at fault for an accident.
- Collision: Collision insurance covers damage caused by an accident regardless of who is at fault and any damage caused by hitting a static object such as a tree or fence.
- Comprehensive: Comprehensive insurance will cover any damage caused by things outside of the driver’s control, including weather, fire, theft, or vandalism.
Other coverages for classic or collectible cars are:
- Roadside Assistance: This type of roadside assistance is different than what you would purchase for a regular car or truck. Roadside assistance for collectible cars includes flatbed or covered towing to prevent damage or unnecessary wear.
- Traveling insurance: The cost of food, rental vehicles, and hotel stays will be partially or fully reimbursed.
- Auto show medical: This is medical coverage for anyone, including yourself that gets hurt at an exhibit featuring your kit car.
- No attendance coverage: Damage to your vehicle during a car show is covered even if you are not in attendance.
- Spare parts insurance: This coverage type reimburses you for spare parts separate from the vehicle but necessary for the car’s operation. You must submit an established value for these parts for them to be covered.
Requirements for Kit Car Insurance
Each collectible car and its insurance is unique so requirements may differ depending on your situation. These are the most common qualifications to get classic or collectible car insurance per AISInsurance:
- Mileage: If you use your car for your normal commute, you won’t be able to get it insured as a classic or collectible car. Typical annual mileage limits for a collectible car are 5000 to 7000 miles. This number is determined by your insurance company and maybe even lower than 5000.
- Age: To get collectible car insurance, your vehicle should be older than 25 years old.
- Driving Record: If you have a history of at-fault accidents or traffic violations, insurance providers may refuse to insure a vehicle of such high value. Some insurers will take into account the last 10 years of driving history. Just one accident in the last three years could hold you back from getting insured.
- Storage: Insurance companies will often require that your high-value collectible vehicle is stored in a covered garage. If your car is parked in an open driveway or parking lot, it is exposed to the elements and is more likely to experience damage from weather or vandalism. If you don’t have the storage space for your car, you may need to pay for a storage unit.
- Condition: If your kit car has been involved in an accident or if the vehicle is designed for high-risk activities such as off-roading, insurance companies may refuse to insure you.
How Much Does Classic Car Insurance Cost?
Insurance costs are determined partly by the level of coverage, your age, driving history, the value of your vehicle, and location.
According to AutoInsurance.org, average premiums for kit car insurance are $118 per month. Because kit vehicles are highly customized with specialty parts, they face higher rates of theft, vandalism, and expensive replacement costs.
Here are a few ways to lower your collectible car insurance rates:
- Raise your deductible: Raising the limits on your deductible can reduce the price of your monthly premiums. You will have to pay more out of pocket in the event of a total loss, but you will spend less over time on monthly payments.
- Only get the coverage you need: If you only drive your car on special occasions, consider purchasing liability-only insurance or temporary car insurance.
- Apply for discounts: Saving money becomes easy when you qualify for multiple discounts. You may be able to bundle your kit auto insurance with your personal policy to reduce your premiums.
- Store your vehicle in a safe place: You can save on insurance if you store your vehicle in a secure area or by equipping it with cameras and alarms.
- Make sure you are covered for the full amount: If your car is destroyed or totaled in an accident, you want to be sure you will be getting the full price of your vehicle from your insurance company.
- See about kit car clubs: Some insurance companies offer discounts if you are a member of a recognized kit car club. Additionally, members of these clubs often know where to get the best kit car insurance.
- Compare insurance companies: Kit cars require specialized insurance so insurance providers vary on prices drastically. Always get a list of options when choosing what insurer you are going to go with. Jot down their pros and cons, prices, additional coverages, and anything else that might benefit you.
More and more major insurance providers are offering kit, classic and collectible car insurance. Kit car insurance is affordable and easy to get. Head online to get a quote for your collectible today.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
What Insurance Do I Need for a Classic Car or Kit Car?
Auto Insurance for Kit Vehicles [Update]
GEICO Classic Car Insurance: Everything You Need to Know
Full Coverage Insurance: Everything You Need to Know
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